Dow Jones Futures Dip After Last Week's Losses; Tesla Stock Slides On Downgrade

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Dow Jones Futures Dip After Last Week's Losses; Tesla Stock Slides On Downgrade

June 26, 2023

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Dow Jones futures dipped Monday morning, continuing lower after last week's stock market losses. Google parent Alphabet (GOOGL) and Tesla stock dropped on analyst downgrades.

On the economic front this week, new homes sales are due out Tuesday, while pending home sales are out Thursday, along with first-time unemployment claims.

Friday's personal income and outlays report for May will shed some light on how consumer spending is holding up, and it will update the Federal Reserve's favorite inflation indicator: the personal consumption expenditures price index.

Cruise-ship operator Carnival (CCL) is set to report its earnings results Monday morning. CCL stock closed Friday sharply above a 12.62 cup-base buy point.

Later this week, Dow Jones stocks Nike (NKE) and Walgreens (WBA) will report their quarterly results. Nike earnings are out Thursday, while Walgreens will report Tuesday.

Stock Market Today: Alphabet, Tesla Downgraded

Alphabet shares traded down 1.4% early Monday after UBS downgraded the stock from buy to neutral. The firm raised its price target from 123 to 132. Meanwhile, EV giant Tesla (TSLA) skidded more than 2% Monday after Goldman Sachs downgraded the stock from buy to neutral, upping the price target to 248 from 185.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were down a fraction ahead of today's stock market open.

Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Roku (ROKU) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market pullback.

Tesla is an IBD Leaderboard stock. McKesson is an IBD SwingTrader stock, while Chipotle featured as Wednesday's Stock Of The Day as well as in the latest Stocks Near A Buy Zone column.

IBD's latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday's opening bell, Dow Jones futures edged lower vs. fair value. S&P 500 futures lost 0.1%. And Nasdaq 100 futures inched lower in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.2%, while the SPDR S&P 500 ETF (SPY) moved down 0.1% early Monday.

The 10-year U.S. Treasury yield ticked lower to 3.68%. The yield recently has been bobbing in a range between 3.57% and 3.85%, settling lower Friday at 3.73%.

Oil prices bounced modestly Monday morning, rebounding after last week's losses, but remain near their recent lows. West Texas Intermediate futures rose nearly 1%, to around $69.50 a barrel.

Stock Market Action

On Friday, the Dow Jones Industrial Average dropped nearly 0.7%, while the S&P 500 lost 0.8%. The tech-heavy Nasdaq composite fared the worst, down 1%.

Friday's Big Picture column commented, "While the market is pulling back, action remains constructive. Taking a breather now means the indexes can gather strength for further advances. Due to this, IBD continues to recommend 60% to 80% exposure. But this is a good opportunity to look over your portfolio and perhaps lock-in some profits in your big winners."

Now is an important time to read IBD's The Big Picture column as the stock market remains in an uptrend but is pulling back.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: JPMorgan, Salesforce

Dow Jones banking leader JPMorgan is about 3% below a 143.37 flat-base buy point after Friday's 0.5% drop. Shares are right at their 50-day line. JPM stock inched higher early Monday.

Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 21-day exponential moving average. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.

In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now trying to bounce from support at the 10-week line. CRM stock dropped 0.1% Monday morning.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Best Stocks To Buy And Watch: Chipotle, McKesson, MongoDB, Roku

IBD Leaderboard watchlist stock Chipotle is rebounding from its 10-week line and building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. Chipotle was Wednesday's IBD Stock Of The Day. CMG stock fell a fraction Monday morning.

IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. Shares were off 0.5% Monday.

MongoDB is trading tightly after its recent earnings-fueled gap up, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline-entry around 386. MDB stock rose 0.1% Monday morning.

Streaming giant Roku is building a cup-with-handle base with a 75.45 buy point, according to IBD MarketSmith pattern recognition, even as the stock extended a losing streak to seven sessions Friday. Roku shares are trying to halt their slide around their 50-day line, a key support level to watch. The stock fell 0.2% early Monday.

Learn How To Time The Market With IBD's ETF Market Strategy

Best Stocks To Buy And Watch In Stock Market Rally

These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point ASML (ASML) 683.18 Cup with handle Salesforce (CRM) 200.00 Consolidation Cloudflare (NET) 66.20 Double bottom Roku (ROKU) 75.45 Cup with handle

Source: IBD Data As Of June 26, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

IBD Leaderboard stock Tesla skidded 3% Friday after a third analyst downgrade in as many days. Shares remains sharply extended above a double-bottom base's 207.79 buy point. They closed Friday 18% off their 52-week high.

TSLA stock threatened to add to Friday's losses, falling 2.2% Monday. Last week, shares snapped a five-week win streak, declining 1.5% on the week.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock hit an all-time high Friday before reversing 0.2% lower. Last week, shares traded as high as 187.56. The stock continues to hold well above a 157.38 buy point. Early Monday, AAPL stock was down 0.1%.

Microsoft shares slid 1.4% Friday, continuing a recent pullback. Last week, the stock hit a record high at 351.47. Despite the recent losses, MSFT stock remains in the 20%-25% profit-taking zone from a 276.76 flat-base buy point, so investors take at least some profits. And on Monday morning, Microsoft shares were off 0.1%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

Dow Jones Futures Dip After Last Week's Losses; Tesla Stock Slides On Downgrade

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